State gas firm issues US$750 mln in bonds

South Korea's state-run gas company said Friday that it's successfully issued US$750 million worth of 30-year bonds thanks to firm overseas investor confidence in the country's long-term economic growth potential. The global bonds carry an annual interest rate of 6.25 percent and no put option, making it the first of its kind issued by a local company, Korea Gas Corp. (KOGAS) said. "In the past, local companies have sold global bonds with a maturity of 30 years, but they all had put option clauses that effectively obliged early repayment," it said. The successful sale should make it easier for other local companies to issue their own overseas bonds. "The selling of the bonds at this juncture is noteworthy because of the ongoing eurozone crisis, and heightened geopolitical risks brought on by the sudden death of North Korean leader Kim Jong-il," KOGAS said The latest bond sales show foreign investors' confidence in South Korea's ability to post solid growth in the future that can generate demand for gas, it said. Initially, KOGAS expected to sell only $500 million worth of bonds, but favorable investor response led to the increased debt sale, the company added.